Petrodollar recycling refers to the phenomenon of major oil-producing states mainly from OPEC earning more money from the export of oil than they could usefully invest in their own economies. It was a phenomenon of the late 1970s and early 1980s with the peak years for petrodollar surpluses.

During this period, states such as Saudi Arabia, Kuwait and Qatar amassed large surpluses of petrodollarswhich they could not invest in their own countries. This was due to small populations or being at early stages of industrialization. These petrodollar surpluses can be defined as net US dollars earned by those nations which were in excess of the internal development needs of those nations.

What is SAP?

Structural Adjustment Policy

What is IMF Surveillance?

The IMF is mandated to oversee the international monetary system and monitor the economic and financial policies of its 187 member countries.

The IMF highlights possible risks to domestic and external stability and advises on needed policy adjustments.

What is Balance of Payments?

an accounting record of all monetary transactions between a country and the rest of the world."

What is Balance of Payments Financing / Balance of Payments Crisis?

Balance of payments difficulties can arise—and, in the worst case, build into crises—even in the face of strong prevention efforts.

The IMF assists countries in restoring economic stability by helping to devise programs of corrective policies and providing loans to support them."